Ust-Luga (special economic zone)

History

2022: Mishustin approved the creation of the Ust-Luga SEZ

At the end of May 2022, Prime Minister Mikhail Mishustin signed a resolution approving the creation of the Ust-Luga special economic zone in the Leningrad Region. It is planned to build one of the world's largest gas processing plants on its territory.

We are talking about the construction in Ust-Luga of a plant for the production of liquefied natural gas and a gas chemical complex, where various polymers will be made. The total investment in these projects will amount to 2.2 trillion rubles. The new production will provide work for 5.6 thousand people, as well as significantly increase the volume of gas processing and polyethylene production in Russia.

Mishustin approved the creation of the Ust-Luga SEZ in the Leningrad Region

According to the press service of the Cabinet on May 27, 2022, the location of the special economic zone was not chosen by chance. Ust-Luga is the largest and deepest port of the Baltic Sea, which can receive large-tonnage ships. In addition, the Leningrad Region has a developed energy infrastructure. The Leningrad-Kohtla-Järve and Nord Stream 2 gas pipelines pass through its territory. A special economic zone of the Ust-Luga industrial and production type will be created at sites in Kingisepp district, determined by the agreement. By the end of May 2022, how much it will cost to build a new SEZ is not reported.

Special economic zones are created for the development of industry, high-tech sectors of the economy, tourism and port infrastructure. Placement in the SEZ gives the business a number of advantages. First of all - established infrastructure and communications. We are also talking about minimizing administrative barriers, tax incentives and customs preferences. All this helps the socio-economic development of the territories, contributes to the growth of employment and the well-being of citizens.^[1]

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